Ch 18 BLAW: Discharge Flashcards
Discharge
obligations have been relieved
you may not delegate duties which are personal in nature
true
a party may be discharged from a valid contract by
a condition occurring or not occurring, full performance or material breach by other party (jill doesn’t pay jennifer,) agreement of the other parties, and operation of the law
complete performance
done. Sometimes contracts struggle to reach this. YOU GET PAID WHEN JOB IS DONE. Sometimes may not complete punch list (where house is livable but they’ve made a mistake)
substantial performance
done most of the.
Can subject be used without complete performance? Yes
ex- wrong paint color
inferior performance
done some of the work but not much
Same as no performance at all. Subject cannot be used which has no value.
Difference between substantial and inferior
Can the product be used now? amount of work is irrelevant
discharge by performance
material breach of contract - important breach of contract = inferior performance
Non-material breach of contract- not critical to using the contract as designed = substantial performance. Have to pay contractor for what has been done
Time for performance- time limit has been reached. Reasonable time is implied if time is not stated in contract
Discharge by agreement
discharge by novation- party a and party b are in contract but one party wants to get out of contract and give responsibility another party (party C assumes all responsibility of party B and Party B isn’t liable if party C doesn’t perform
discharge by accord and satisfaction- new agreement made to resolve contractual dispute (not breach.) Satisfaction is the performance of an accord
Discharge by operation of law
material alteration!!!- if one party changes the contract without an agreement. The innocent party is discharged. EX (guilty party adds an extra 0 onto the price of contract)
Impossibility (not inconvenience) of performance- when price of underlying material to complete contract changes
-ex- Contracts to buy houses after hurricane Katrina
- ex- Contract to sell milk at 1.5 without any other provisions then price wet up to 5. Seller tried to get out of project, but court ruled just inconvenient not impossible.
